nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2009‒11‒14
fifteen papers chosen by
Laura Stefanescu
European Research Centre of Managerial Studies in Business Administration

  1. How Do Firms Source External Knowledge for Innovation? : Analyzing Effects of Different Knowledge Sourcing Methods By Ki H. Kang; Jina Kang
  2. Do external knowledge sourcing methods matter in service innovation?: analysis of South Korean service firms By Ki H. Kang; Jina Kang
  3. Revisiting Knowledge Transfer: Effects of Knowledge Characteristics on Organizational Effort for Knowledge Transfer By Ki H. Kang; Jina Kang
  4. Environmental innovation: Using qualitative models to identify indicators for policy By Kanerva, Minna; Arundel, Anthony; Kemp, Rene
  5. Centers tehnology transfer-active factor an the regional development By Ghimisi, Stefan/St; Popescu , Gheorghe
  6. Constructing a knowledge economy composite indicator with imprecise data By Laurens CHERCHYE; Willem MOESEN; Nicky ROGGE; Tom VAN PUYENBROECK
  7. Global Value Chains, Technology Transfer and Local Firm Upgrading in Non-OECD Countries By Juliane Brach; Robert Kappel
  8. Skills required for innovation: A review of the literature By Pierre Therrien; Petr Hanel
  9. The Faster Accelerating Knowledge-based Society By Tai-Yoo KIM; Almas HESHMATI; Jihyun PARK
  10. The Behavioral Equivalence of Organizational Culture By Indu Rao
  11. Lab Experiments Are a Major Source of Knowledge in the Social Sciences By Falk, Armin; Heckman, James J.
  12. Implications of Global Crisis:Integrate Sustainability with Organizational Culture By Indu Rao
  13. Environmental Options and Technological Innovation: An Evolutionary Game Model By Simone Borghesi; Angelo Antoci; Marcello Galeotti
  14. Regional Factors and Innovativeness – An Empirical Analysis of Four German Industries By Tom Broekel; Thomas Brenner
  15. Sustainability Innovation in United Kingdom Schools By Wayne Head; Richard Buckingham

  1. By: Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)
    Abstract: In the era of ¡®open innovation¡¯, external knowledge is a very important source for technology innovation. In this paper, we investigate the relationship between external knowledge and performance of technology innovation. The effect of external knowledge on the performance of technology innovation can vary with different external knowledge sourcing methods. We identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration, and technology acquisition. We propose three hypotheses to examine relationship between the three methods of external knowledge sourcing and the technology innovation performance. Our results show that information transfer from informal network and technology acquisition have positive relationships with the technology innovation performance. R&D collaboration, however, has an inverted-U shape relationship with technology innovation performance. This implies that the effect of external knowledge on technology innovation varies depending on the particular external knowledge sourcing method. This research has important implication for firms in selecting appropriate strategy for accessing external knowledge.
    Keywords: external knowledge, open innovation, knowledge sourcing method, technology innovation
    Date: 2009–08
  2. By: Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)
    Abstract: This paper analyses the effects of different external knowledge sourcing methods on service innovation performance. We identify three external knowledge sourcing methods: informal information transfer, R&D collaboration, and technology outsourcing. Three hypotheses are established to examine the relationship between these three external knowledge sourcing methods and service innovation. Our result shows that the relationship between the extent of external knowledge sourcing and service innovation performance varies depending on the particular external knowledge sourcing method. This research grants important implication to firms in selecting an appropriate external knowledge sourcing strategy in service industry.
    Keywords: service innovation, external knowledge sourcing method, informal information transfer, R&D collaboration, technology outsourcing
    Date: 2009–08
  3. By: Ki H. Kang; Jina Kang (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)
    Abstract: This study analyzes the effects of knowledge characteristics on the extent of organizational effort for knowledge transfer. In this paper, three knowledge characteristics that affect organizational behavior for knowledge transfer are identified based on knowledge-based views and organizational learning theory: tacitness, difficulty, and the importance of knowledge. We establish three hypotheses on the effects of these three knowledge characteristics on the extent of effort for knowledge transfer (i.e., the frequency of contact with knowledge source), and provide empirical tests employing the dataset from project teams in a multinational consulting firm via the OLS model. Results show that tacitness, difficulty, and importance have positive effects on the frequency of contact with knowledge sources. This implies that firms exert more effort to acquire the knowledge when the knowledge is tacit, difficult, or important
    Keywords: knowledge transfer, knowledge characteristics, tacitness, difficulty,importance
    Date: 2009–08
  4. By: Kanerva, Minna (UNU-MERIT); Arundel, Anthony (UNU-MERIT); Kemp, Rene (UNU-MERIT, and ICIS, Maastricht University)
    Abstract: Environmental innovation is an essential part of a knowledge based economy, as environmental innovation makes economies more efficient by encouraging and facilitating the use of fewer material or energy inputs per unit of output. In this respect, environmental innovation replaces material inputs with knowledge. Environmental innovation should also result in fewer externalities, or negative environmental impacts, which affect our health and well-being, also in terms of global climate change. Technology shifts caused by technological breakthroughs, rapid changes in demand for resources, or environmental imperatives could also impel societies to invest more heavily in research on how to use energy and other resources more efficiently. The main goal of this paper is to explore and identify relevant indicators for environmental innovation that could be used to develop innovation policy for all economic sectors, as well as for the field of environmental technologies. This is done firstly with the help of a qualitative model presenting the eco-innovation chain. Based on both literature and our data analysis, our chosen key indicators include measures on: environmental regulations and venture capital for the eco-industry; environmental publications, patents and business R&D; eco-industry exports and FDI; sales from environmentally beneficial innovation across sectors; and environmental impacts related to energy intensity and resource productivity of economies. Finding key eco-innovation indicators related to such factors is important for policy makers, as environmental innovation policy is required to counter the two market failures associated with environmental pollution and the innovation and diffusion of new technologies.
    Keywords: Environmental innovation, environmental goods and services, innovation indicators, CIS, environmental impacts, European Union
    JEL: O14 O30 O33 O38 Q51 Q55 Q58
    Date: 2009
  5. By: Ghimisi, Stefan/St; Popescu , Gheorghe
    Abstract: The purpose of this paper is to investigate mechanisms of knowledge transfer between firms and universities. Universities have become increasingly involved in technology transfer by establishing offices of technology transfer, business incubators, and technology parks. This paper presents some aspects of technology transfer centers, specific activities in these entities, with a real example, UCB-Pitt, an entity founded the University Constantin Brancusi of Targu Jiu.
    Keywords: tehnology transfer; knowledge; university
    JEL: A12 D24
    Date: 2009–11–10
    Abstract: This paper focuses on the construction of a composite indicator for the knowledge based economy using imprecise data. Specifically, for some indicators we only have information on the bounds of the interval within which the true value is believed to lie. The proposed approach is based on a recent offspring in the Data Envelopment Analysis literature. Given the setting of evaluating countries, this paper discerns a ‘strong country in weak environment’ and ‘weak country in strong environment’ scenario resulting in respectively an upper and lower bound on countries’ performance. Accordingly, we derive a classification of ‘benchmark countries’, ‘potential benchmark countries’, and ‘countries open to improvement’.
    Keywords: knowledge economy indicators; composite indicators; Multiple Imputation; Benefit of the Doubt; weight restrictions; Data Envelopment Analysis; data impreciseness
    JEL: C14 C61 C82
    Date: 2009–07
  7. By: Juliane Brach; Robert Kappel (GIGA Institute of Global and Area Studies)
    Abstract: The productivity and competitiveness of local firms in non-OECD countries depends as much on technological capacities and successful upgrading as in industrialized countries. However, developing countries undertake very little to no original R&D and primarily depend on foreign technology. Long-term contracts and subcontracting arrangements within global value chains are here very important forms of transnational cooperation and therefore also important channels for technology transfer, especially as the majority of these countries attract only limited foreign direct investment. Drawing on innovation and growth models as much as on value-chain literature, we outline an analytical model for empirical research on local firm upgrading in non-OECD countries and technology transfer within global value chains.
    Keywords: technology transfer, upgrading, innovation, non-OECD countries, global value chains
    Date: 2009–10
  8. By: Pierre Therrien (Industrie Canada, Ottawa); Petr Hanel (CIRST, GREDI, Faculte d'administration, Université de Sherbrooke)
    Abstract: Research teams from 18 OECD countries used the methodology introduced by Crepon-Dugay and Mairesse (CDM) to analyze the impact of innovation on labour productivity using firm data from national innovation and administrative surveys. To ensure international comparability, the OECD ‘core’ CDM model did not include variables for which data were missing in some countries. In spite of this shortcoming, the results are broadly in line with theoretical hypotheses and previous studies and show a surprising degree of similarity between countries. This paper builds on the Canadian application of the ‘core’ model used for the OECD project. It uses to the full extent all information available on manufacturing establishments from the Canadian Survey of innovation 2005 linked with the Annual Survey of Manufactures and Logging (ASML). The estimated econometric model controls for selection bias, simultaneity, size of firm and industry effects. The main findings suggest that (1) export outside of the US market, size of the firm and use of direct or indirect government support are factors increasing the probability to innovate and having positive innovation sales. (2) Exports (both to the US and outside of the US market), cooperation with other firms and organizations, and high share of the firms’ revenue coming from sales to its most important client are all factors correlated with higher innovation expenditures per employees. Moreover, firms with a higher market share at the beginning of the period are spending more on innovation by the end of the period. (3) Firms with higher innovation expenditures per employee generate more innovation sales per employee. Other factors increasing innovation sales are human and physical capital and introduction of process innovations. (4) Finally, the firms generating more innovation sales per employees achieve higher labour productivity, even when the size of firms, the intensity of human and physical capital and labour productivity at the beginning are taken into account. The results add valuable further information to and are in line with the simpler model applied to 18 other OECD countries. The paper concludes with discussion of policy implications.
    Keywords: Innovation; skills; national innovation systems; labour market; education of innovation; effect of innovation on skills
    JEL: J24 J44 L6 L8
    Date: 2009–09–01
  9. By: Tai-Yoo KIM; Almas HESHMATI; Jihyun PARK (Technology Management, Economics and Policy Program(TEMEP), Seoul National University)
    Abstract: Economies in knowledge-based societies grow faster than in previous agricultural and industrial societies. This growth is based on the information and communications technology (ICT) development. The production function of ICT industries shows increasing returns to scale. The network effect of ICT development causes increasingly accelerated production and consumption values as the market gets larger in all supply and demand aspects. Thus, ICT development is the fundamental driving force of the faster economic growth, accelerated by increasing returns to scale and the network effect. Early investment in ICT achieves steep economic growth. The definition and characteristics of a knowledge-based society are given, and the nature, causes, and patterns of the faster acceleration of it are explained.
    Keywords: Knowledge-based society, Information society, Post-industrial society, Economic development, Faster acceleration, Industrial policy, Technical change
    JEL: L16 O11 O47
    Date: 2009–08
  10. By: Indu Rao
    Abstract: Three decades of organizational cultural (OC) studies have seen change in both content and emphasis. This paper presents findings from an extensive review of literature on OC and highlights the relevance of OC with respect to individual, organizational, intra-organizational, industry and external environment related variables. The concept of organizational culture (OC) has traditionally focused on values and beliefs and has been considered to be relatively stable and enduring. But literature is less sanguine about the reciprocal evolution of culture through behaviors. This paper presents a behavioral perspective on OC and contributes to its emerging dynamic aspect. A behavioral model of OC is suggested and propositions are drawn to explain the dynamics involved.
    Date: 2009–08–01
  11. By: Falk, Armin (University of Bonn); Heckman, James J. (University of Chicago)
    Abstract: Laboratory experiments are a widely used methodology for advancing causal knowledge in the physical and life sciences. With the exception of psychology, the adoption of laboratory experiments has been much slower in the social sciences, although during the last two decades, the use of lab experiments has accelerated. Nonetheless, there remains considerable resistance among social scientists who argue that lab experiments lack "realism" and "generalizability". In this article we discuss the advantages and limitations of laboratory social science experiments by comparing them to research based on non-experimental data and to field experiments. We argue that many recent objections against lab experiments are misguided and that even more lab experiments should be conducted.
    Keywords: laboratory experiments, field experiments, controlled variation
    JEL: C90 C91 C92 C93 D00
    Date: 2009–10
  12. By: Indu Rao
    Abstract: Sustainability is an issue of escalating importance as a result of structural changes of organizations which are consolidating, downsizing, merging and outsourcing as well as due to the increasing complexity and unpredictability of the external environment. Understanding, assessing and managing organizational culture can help create both stability and adaptability for organizations, thus helping supportive integration of the sustainability strategy into appropriate organizational behavior. This paper draws from review of literature on the concepts of sustainability and organizational culture in the present context of economic turmoil. The findings suggest that organizational culture moderated by leadership and trust play an important role in sustainability of organizations. A model is thereby proposed depicting the role of organizational culture, leadership and trust towards sustainability of a firm. It is also suggested that organizations can be visualized as manifestations of cultures and future organizations need to integrate sustainability with their organizational culture in order to be prepared for the uncertain socio-economic times
    Date: 2009–10–30
  13. By: Simone Borghesi (University of Siena); Angelo Antoci (University of Sassari); Marcello Galeotti (University of Florence)
    Abstract: This paper analyses the effects on economic agents' behaviour of an innovative environmental protection mechanism that the Public Administration of a tourist region may adopt to attract visitors while protecting the environment. On the one hand, the Public Administration sells to the tourists an environmental call option that gives them the possibility of being (partially or totally) reimbursed if the environmental quality in the region turns out to be below a given threshold level. On the other hand, it offers the firms that adopt an innovative, non-polluting technology an environmental put option that allows them to get a reimbursement for the additional costs imposed by the new technology if the environmental quality is above the threshold level. The aim of the paper is to study the dynamics that arise with this financial mechanism from the interaction between the economic agents and the Public Administration in an evolutionary game context.
    Keywords: Environmental Bonds, Call and Put Options, Technological Innovation, Evolutionary Dynamics
    JEL: C73 D62 G10 O30 Q28
    Date: 2009–10
  14. By: Tom Broekel; Thomas Brenner
    Abstract: A growing body of work emphasizes the importance of regional factors for regional innovativeness. In this paper, about seventy variables approximating the social-economic characteristics of regions are aggregated to twelve regional factors. In four industry-specific set-ups their influence on firms’ innovativeness is tested. The study confirms that inter-industrial differences exist in the importance of these factors. In the empirical analyses a log-linear model is compared with a linear approach. While both are theoretically problematic it is shown that the log-linear model performs better in the empirical assessment.
    Keywords: regional innovation performance, regional innovativeness, knowledge production function, industry comparison, German regions
    JEL: O18 R11 R12
    Date: 2009–10
  15. By: Wayne Head; Richard Buckingham
    Abstract: This article recommends approaches to take in designing sustainable educational environments. The authors present recent examples of UK school buildings that reduce carbon emissions and capitalise on renewable energy sources, and predict how schools will respond to energy needs in the future.<P>Durabilité et innovation dans les écoles du Royaume-Uni<BR>Cet article émet des recommandations sur les approches à adopter en vue de la conception d’environnements pédagogiques durables. Les auteurs présentent des exemples récents de bâtiments scolaires britanniques qui réduisent leurs émissions de carbone et capitalisent sur les sources d’énergie renouvelables, et prédisent la manière dont les écoles répondront à leurs besoins énergétiques dans le futur.
    Keywords: sustainable development, United Kingdom, learning environment, educational buildings, school infrastructure
    Date: 2009–11

This nep-knm issue is ©2009 by Laura Stefanescu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.